Holiday Entertainment Co., Ltd. (9943) AI Stock Analysis

Holiday Entertainment Co., Ltd.

(TWSE:9943)

Select Model

Rating:65Neutral

Price Target:TWD 53.00▲(7.40% Upside)

Action:initiatedcoverage

Date:11/09/26

Holiday Entertainment earns a moderate score. Its greatest strengths are a conservative balance sheet, strong cash conversion, and a compelling valuation — a 9.3 P/E paired with a 7.06% dividend yield backed by robust free cash flow. Offsetting this are three consecutive years of revenue decline and sharp gross margin compression that have cut net income nearly 40% from its 2023 peak and dragged return on equity to 11.6%. Technicals reinforce caution, with the price below all major moving averages and negative MACD confirming a downtrend, though low beta and near-oversold readings limit downside volatility. The investment case hinges on revenue stabilising and margin erosion halting; until then, the stock looks like an income-oriented holding rather than a growth story.

Positive Factors

Sustained ProfitabilityHealthy gross, operating, and net profitability provides an established earnings base and supports internal funding of the business. Although 2025 softened, roughly 19% net profitability indicates the company still retains meaningful earnings power over the next several quarters.

Negative Factors

Declining RevenueRevenue declined in both 2024 and 2025, while reported revenue growth is -7.41%. A repeated top-line contraction can weaken operating leverage, reduce reinvestment capacity, and signal that demand momentum may remain a constraint over the next several quarters.

Holiday Entertainment Co., Ltd. (9943) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.21B
Dividend Yield: 7.09%
Average Volume (3M): 103.93K
Price to Earnings (P/E): 9.3
Beta (1Y): 0.12
Revenue Growth: -5.24%
EPS Growth: 17.98%
Country: TW
Employees: 2,286
Sector: General
Sector Strength: 55
Industry: Leisure

Holiday Entertainment Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Taipei City, Taiwan, Holiday Entertainment Co., Ltd. is a Taiwanese enterprise primarily focused on audio-visual and vocal equipment. Its diverse operations encompass the distribution and retail of AV gear and related provisions, in addition...

Holiday Entertainment Co., Ltd. Financial Statement Overview

Summary

A financially sound but operationally softening business. The balance sheet (score 76) is conservative, with equity funding roughly 71% of assets and a low debt-to-equity ratio of 0.22 after steady deleveraging. Cash flow (score 79) is the standout: operating cash flow rose to NT$859 million and free cash flow more than tripled to NT$757 million, covering net income 1.32 times — though free cash flow has been lumpy across the capital expenditure cycle. The drag is the income statement (score 55): revenue has declined three years running to NT$2.41 billion, gross margin compressed from 54.3% to 42.2%, and net income fell nearly 40% from its 2023 peak to NT$457 million, pushing return on equity down to 11.6%. Absolute profitability remains healthy (23.1% operating margin, 35.9% EBITDA margin), but simultaneous top-line and margin erosion is the key risk.

Income Statement

55Neutral

Balance Sheet

76Positive

Cash Flow

79Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.34B	2.41B	2.60B	2.77B	2.38B	1.68B
Gross Profit	1.03B	1.02B	1.35B	1.50B	1.21B	776.31M
EBITDA	807.90M	866.79M	1.12B	1.02B	945.14M	458.39M
Net Income	513.91M	456.98M	654.87M	745.27M	470.11M	62.73M
Balance Sheet
Total Assets	5.74B	5.51B	5.66B	5.83B	5.59B	5.40B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.07B	1.17B	1.54B	1.10B	1.16B
Total Debt	924.54M	851.24M	771.18M	841.25M	1.13B	1.07B
Total Liabilities	2.02B	1.56B	1.56B	1.75B	1.88B	1.87B
Stockholders Equity	3.70B	3.93B	4.08B	4.06B	3.70B	3.52B
Cash Flow
Free Cash Flow	723.66M	757.46M	407.42M	850.83M	545.00M	45.33M
Operating Cash Flow	820.22M	859.14M	630.75M	909.70M	591.03M	297.36M
Investing Cash Flow	79.83M	10.80M	-55.84M	101.45M	-49.04M	220.85M
Financing Cash Flow	-856.41M	-861.90M	-916.52M	-681.88M	-549.64M	-792.39M

Holiday Entertainment Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:9943 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2706	68Neutral	TWD 6.00B	17.83	―	2.92%	4.52%	9.08%
TW:9943	65Neutral	TWD 6.21B	9.28	―	7.09%	-5.24%	17.98%
TW:6184	62Neutral	TWD 5.57B	15.75	―	8.10%	0.53%	-39.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2614	55Neutral	TWD 6.02B	6.44	―	3.03%	-3.56%	36.37%
TW:2729	52Neutral	TWD 6.66B	23.05	―	4.75%	5.74%	-45.98%
TW:5263	40Underperform	TWD 6.43B	38.67	―	1.14%	10.17%	―

* General Sector Average

Performance Comparison

TW:9943 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:9943	Holiday Entertainment Co., Ltd.	49.35	-8.34	-14.46%
TW:2614	Eastern Media International Corporation	13.20	-4.89	-27.03%
TW:2706	First Hotel Co., Ltd.	12.00	-0.78	-6.13%
TW:2729	TTFB Co. Ltd.	146.00	-27.76	-15.98%
TW:5263	Brogent Technologies Inc.	85.90	-5.34	-5.85%
TW:6184	Dafeng TV Ltd.	37.05	-7.98	-17.71%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Holiday Entertainment Co., Ltd. AI Stock Analysis